August 27th• 3 min read
ETH Plunges 8% After ATH, $700M Liquidated
Ethereum crashed 8% below $4,400 just days after hitting its all-time high, triggering nearly $700 million in liquidations as leveraged positions unraveled in a sharp market correction.
Key takeaways
📉 Sharp Reversal: ETH dropped 8% to below $4,400 within 24 hours after reaching $4,946 all-time high.
💥 Liquidation Cascade: Nearly $700 million in leveraged positions were wiped out across crypto markets.
⚡ Altcoin Selloff: Major altcoins like SOL, DOGE, and ADA declined 6-8% as selling pressure intensified.
🎯 Key Support: ETH now testing crucial $4,400 support level that could determine next directional move.
Deep dive
Ethereum's sharp correction from its all-time high demonstrates the volatile nature of crypto markets, even during strong bull runs.
The 8% decline triggered a cascade of liquidations totaling nearly $700 million, with ETH accounting for a significant portion as over-leveraged traders were forced to exit positions.
This correction appears to be profit-taking after the recent rally rather than a fundamental shift in sentiment, as institutional buying continues and ETF inflows remain strong.
The key support level around $4,400 will be critical to watch, as a hold above this level could set the stage for another leg higher, while a break below might signal deeper consolidation before the next advance.
Polaris insights AI-generated
Disclaimer: This article may contain content generated or assisted by AI, based on information from public sources. While we aim for accuracy, no content should be taken as financial or trading advice. Always do your own research and consult a professional before making investment decisions. Markets are volatile and involve risk.
